Impact POS Codes
Things Needed for term conversion to whole
-Paper App or Virtual Conversion Packet
-Special Paper HIPAA
-Paper Replacement Form
-Premium of converted whole life amount (check or cash which will need to be converted to a money order)
-Oral Swab
Steps
-Enter the person into EAPP to find out how much the whole life would cost by itself
-Choose the amount of whole life they would like to convert and find out how much that would cost by itself
-The client has the option of dropping the remaining amount of term or keeping it at the same pro-rated premium
-Fill out the entire Paper app or Conversion Packet except for medical questions and tobacco question. Doctors info and date of last physical are still needed and write "Conversion" at top of app
-Always need oral swab whether in person or if virtual advise that an examiner will be contacting them to obtain
-Collect voided and live check for the premium of the converted whole life
-Get special HIPAA and Replacement form filled and signed
Policy Issue Hint
Conversion of Term Rider Procedures
Here are some simple guidelines for writing conversions of Term Riders (Term Policies are dealt with in a separate hint)
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When writing an application to convert a term rider to permanent coverage, keep in mind that only the term rider is convertible
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Accidental Death Benefit (ADB), Waiver of Premium (WP), and B2000 are not convertible.
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If the Face amount of the conversion application is LOWER than the amount of the existing rider, you need to tell us what to do with the remainder of the existing rider. Should we keep it on the existing policy or should it be cancelled?
When You MUST answer ALL the health questions:
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Anytime you add supplementary benefits*
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When the face amount of the conversion application is HIGHER than the amount of the existing rider*
*The application will be forwarded to the Underwriting Department to evaluate the request for the additional requested benefit.
Remember to always collect the full 1-month initial premium for the conversion policy and NOT the difference in premium between the old policy and the new one.
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As a rule, we use the paid to date of the previous coverage as the issue date of the new policy to prevent double billing.
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An exception would be made in order to save age on the new policy
If there is a refund to be made, it will be done by Policy Owner Service from the OLD policy after the new policy has been finalized.
Lastly, one of the most important procedures is to properly mark the transmittal when you submit the conversion by checking the box, " Rider Add-on/ Conversions". This notifies us that conversions are attached and we will pull them for immediate processing. This will also prevent us from loading a conversion application as new business.
The conversion privilege in our term coverage enables the insured to convert to a whole life plan without evidence of insurability for a face amount equal to the rider. We will convert any non-smoker coverage to a non-smoker policy without evidence of insurability. We will not need the oral test completed and we do not require that medical questions be answered.
For existing term coverage that does not have smoker/non-smoker rates, such as the 10 Year R&C written before the 2001 CSO, we will need an oral test if the applicant wishes to qualify for non-smoker rates. We do not require that medical questions be answered.
Please inform your agents of this change in the conversion process
